Sunday, October 12, 2014

* Market Momentum: Three Charts Provide Six-Years of Knowledge & Context

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Market momentum has been collapsing and there are headlines everywhere stating exactly that fact. 
Hopefully this post reads as information provision with context.

Here are three charts that demonstrate the phenomenon, and try to put some context around "today" relative to the bottom of the last bear market.

Chart #1
The percentage of stocks trading above the 50-day moving average has fallen from 81% to 16% in a matter of months.

Provided by

Chart #2
The percentage of stocks trading above the 200-day moving average has fallen from 78% to 28% in a matter of about one-year.
Provided by

Chart #3: Context
The percentage of stocks trading above the 200-day moving average hit 3% at the bottom of the last bear market (current level is 28% from chart above).

Provided by

This is trade analysis, not a recommendation.

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